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REITs 101
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Welcome to REITs 101, which will level up your REITs investment knowledge with our full educational REIT Investment.
Welcome to REITs 101, which will level up your REITs investment knowledge with our full educational REIT Investment.
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REITs' virtuous and vicious cycles
REITs generally enjoy a virtuous cycle during good times.
When the economy is growing, REITs enjoy better occupancy and could increase rent without losing tenants. Therefore they are able to grow their rental income.
A higher income means REITs could distribute more dividends to unit holders and the underlying properties also appreciate in value.
A higher valuation lowers the gearing and allow the REITs to take on more mortgage loans.
It is also likely that ...
When the economy is growing, REITs enjoy better occupancy and could increase rent without losing tenants. Therefore they are able to grow their rental income.
A higher income means REITs could distribute more dividends to unit holders and the underlying properties also appreciate in value.
A higher valuation lowers the gearing and allow the REITs to take on more mortgage loans.
It is also likely that ...
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How to value a REIT with gearing ratio
What is the gearing ratio?
Gearing is the ratio of a REIT's debt to its total property value, also known as aggregated leverage. It is a metric that investors use to assess a company's financial leverage.
High and low gearing ratio
An optimal gearing ratio is primarily determined by the individual company relative to other companies within the same industry. However, you can refer to the basic guidelines for good and bad gearing ratios:
- A gearing ratio hi...
Gearing is the ratio of a REIT's debt to its total property value, also known as aggregated leverage. It is a metric that investors use to assess a company's financial leverage.
High and low gearing ratio
An optimal gearing ratio is primarily determined by the individual company relative to other companies within the same industry. However, you can refer to the basic guidelines for good and bad gearing ratios:
- A gearing ratio hi...
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S-REITS: Top Gainers in Q3 2022-to-date
Global stock markets have been led by technology, consumer cyclical, and Reits sectors in Q3 2022-to-date. In Singapore, the S-Reits and property trusts sector gained 4.9% in total returns and received S$8 million of net institutional inflows during this period. (Source: The Business Times; data as of Aug 07, 2022)
The top 5 total return trusts in Q3 2022-to-date are shown below:
No. 1 Digital Core Reit
Digital Core Reit, or DCR, a pure-play data center S...
The top 5 total return trusts in Q3 2022-to-date are shown below:
No. 1 Digital Core Reit
Digital Core Reit, or DCR, a pure-play data center S...
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REITs, Get Paid Like a Landlord! High-dividend Yields as 7.6%*
A wave of rate hikes across the globe basically announced a "war against inflation". 
When inflation rises, rents rise, meaning that REITs (Real Estate Investment Trusts) will probably bring in potential gains and dividends and REITs may be one of the choice to fight against inflation. 
What is REITs?
To put it simply, REITs is a product that securitizes real estate properties, including brick-and-mortars, commercial and residential...
When inflation rises, rents rise, meaning that REITs (Real Estate Investment Trusts) will probably bring in potential gains and dividends and REITs may be one of the choice to fight against inflation. What is REITs?To put it simply, REITs is a product that securitizes real estate properties, including brick-and-mortars, commercial and residential...
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4 S-REITs that raised DPU in January
Due to the confluence of high inflation and rising interest rates, the REIT sector suffered horribly last year, falling by 12% year over year. Fortunately, the outlook for the asset class is not entirely bleak.
In addition, not all REITs are responding the same way to industry pressures. Despite the difficulties, there are several REITs that have continued to report greater distribution per unit (DPU).
Here are four S-REITs that increased their DPU in January...
In addition, not all REITs are responding the same way to industry pressures. Despite the difficulties, there are several REITs that have continued to report greater distribution per unit (DPU).
Here are four S-REITs that increased their DPU in January...
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3 S-REITs to report higher DPU in the quarters to come
If you invest in REITs, you likely enjoy the steady stream of income that comes from assets.
Acquisitions, asset enhancement initiatives (AEIs), and organic rental growth are some of the strategies REITs can use to increase their asset base and rental income.
These three REITs are using a variety of catalysts to increase their DPU:
1. ARA US Hospitality Trust
As of Jan 4, 2023, ARA US Hospitality Trust (ARAHT), had a portfolio of 36 select-s...
Acquisitions, asset enhancement initiatives (AEIs), and organic rental growth are some of the strategies REITs can use to increase their asset base and rental income.
These three REITs are using a variety of catalysts to increase their DPU:
1. ARA US Hospitality Trust
As of Jan 4, 2023, ARA US Hospitality Trust (ARAHT), had a portfolio of 36 select-s...
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4 REITs that could up their DPU in 2023
It was a volatile year for the REIT industry, as high inflation and soaring interest rates combined dampened asset class sentiment.
However, REITs can use various methods to protect their per-unit allocations (DPUs). These include acquisitions that increase DPUs and rent adjustment, redevelopment and asset enhancement programs (AEI).
With these measures in place, REITs can mitigate the decline in DPUs and report higher DPUs next year.
Here are four REITs th...
However, REITs can use various methods to protect their per-unit allocations (DPUs). These include acquisitions that increase DPUs and rent adjustment, redevelopment and asset enhancement programs (AEI).
With these measures in place, REITs can mitigate the decline in DPUs and report higher DPUs next year.
Here are four REITs th...
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S-REITs: Will it soar in 2023?
Retail sales in Singapore continued to grow in October 2022, and retail sales grew by 10.4% year-on-year in October. Total retail sales in October were estimated at S$4 billion, with online retail sales accounting for an estimated 13.0%.
The 7 S-Reits listed on the Singapore Exchange have significant exposure to retail assets in Singapore:
1. CapitaLand Integrated Commercial Trust
2. Frasers Centrepoint Trust
3. Lendlease Global Commercial Reit
4. Mapletree Pan A...
The 7 S-Reits listed on the Singapore Exchange have significant exposure to retail assets in Singapore:
1. CapitaLand Integrated Commercial Trust
2. Frasers Centrepoint Trust
3. Lendlease Global Commercial Reit
4. Mapletree Pan A...
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7 high quality REITs with rising dividends
The rate hikes have a negative impact on REITs.
The iEdge S-REIT Index was down 16% year-to-date.
Although it seems like REITs have fallen less than the other stocks, it is considerable to REIT investors who often go for yields - a 5% dividend yield would not be able to cover the 16% capital loss.
And rising bond yields could have prompted some investors to dump REITs and buy bonds instead, causing REIT prices to fall.
But it pays to be a contrarian ...
The iEdge S-REIT Index was down 16% year-to-date.
Although it seems like REITs have fallen less than the other stocks, it is considerable to REIT investors who often go for yields - a 5% dividend yield would not be able to cover the 16% capital loss.
And rising bond yields could have prompted some investors to dump REITs and buy bonds instead, causing REIT prices to fall.
But it pays to be a contrarian ...
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Singapore stocks that paid uninterrupted dividends for a decade
If you are an income-seeking investor, you should look at the stocks below that paid uninterrupted dividends for a decade or more.
1. Singapore Exchange Limited
Singapore Exchange Limited (SGX), Singapore's sole stock exchange operator, has paid dividends consistently for over 20 years.
SGX distributed a dividend of S$0.055 in fiscal 2022. By FY2022, this dividend had grown to S$0.32, providing the stock of the exchange operator a 3...
1. Singapore Exchange Limited
Singapore Exchange Limited (SGX), Singapore's sole stock exchange operator, has paid dividends consistently for over 20 years.
SGX distributed a dividend of S$0.055 in fiscal 2022. By FY2022, this dividend had grown to S$0.32, providing the stock of the exchange operator a 3...
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